Sanghvi Institute Of Management And Science

School Of Advanced Management

Presentation On - CIBIL
Presented To
Prof. Abhik Agrawal . . . . .

Presented By :Niranjan Kumar Nirmala Shukla Nirbhay Singh Nishant Agrawal Parmanand Gupta Pratiksha Singh Chauhan

CREDIT INFORMATION BUREAU (INDIA) LIMITED

IN ASSOCIATION WITH DUN & BRADSTREET AND TRANS UNION

Indias First Credit Information Bureau

Contents
What is a Credit Bureau? Introduction Need for CIBIL CIBIL The Promoters Members of CIBIL Functioning of CIBIL CIR(Credit Information Report) Advantage Of CIBIL For Its Members

What is a Credit Bureau?

An

organization that: Collects data pertaining to

Identity data about Consumer (Individual) and Commercial

(Business) entities Credit Information Payment History

Compiles

Credit Information Reports on consumer and commercial borrowers and makes these available to members on request. a third-party service provider for the financial sector

Is

Introduction
CIBIL (Indias first credit information bureau) is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports

Need For CIBIL

Lending money is a risky activity. Before granting loan to the customers, lending institution has to check the credit worthiness of the customer. It includes His Payment Capacity Past Loan Repayment Records Current Liabilities. Thus credit appraisal is like a lenders shield against credit risk. CIBIL aids to this process by providing crucial information regarding loan seekers. This includes days past dues their last credit card bill or any default in paying installments of their current or previous loan.

CIBIL The Promoters

Indias largest bank

Indias largest HFC

40%

40%

10%
Amongst the worlds largest consumer bureaus

10%
Dun & Bradstreet
Worlds leading provider of B2B credit information

Members of CIBIL
Banks

All-India Financial Institutions

Non-Banking Financial Companies Credit Card Companies Housing Finance Companies State Financial Corporations

121 Credit Grantors Have Accepted Membership

16
10 13

2
75

75 Banks Over 90% total credit outstanding amongst Commercial Banks 13 HFCs Over 80% total credit outstanding amongst HFCs 10 FIs Over 90% total credit outstanding amongst FIs 16 NBFCs Substantial portion of the credit outstanding amongst NBFCs 5 SFCs Substantial portion of the credit outstanding amongst SFCs 2 CCCs - 100% total credit outstanding amongst Credit Card Companies

Functioning of CIBIL

Relationship Based Lending

Information Based Lending

CIR
Credit Information Report(CIR) :A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions - quickly and objectively

Type of information on a borrower is available in the CIR:Basic borrower information like:

1. Name 2. Address

In case of individuals:
3. 4. 5. 6. Identification numbers Passport ID Voters ID Date of birth

In case of non-individuals
7. D-U-N-S Number 8. Registration Number 9. Legal Constitution

Records of all the credit facilities availed by the borrower Past payment history Amount overdue Number of inquiries made on that borrower, by different Members Suit-filed status.

Type of information is NOT included in the CIR

Income / Revenue details Amount(s) deposited with the bank Details of borrowers' assets Value of asset(s) mortgaged Details of investment(s)

Advantage Of CIBIL For Its Members

1-CIBIL Provides Credit Information
Centralized Comprehensive Reliable

2-CIBIL Facilitates credit grantors in deciding on

Whom not to give credit Whom to give credit and what extent

3-CIBIL Provides objective tools for risk management 4-CIBIL's CIRs are aimed at helping credit grantors make fast and objective lending decisions. 5-CIBIL help to Improve asset quality and reduce NPAs.

6- Speed and Cost The CIBIL CIRs will make processing loan applications easier, faster and cheaper by sometimes eliminating the need to additionally research and verify borrower details. The average loan in India is sanctioned in 2-3 days. A credit grantor using CIRs will be able to significantly reduce this turn round time and thus have a competitive edge in the marketplace. 7- Credit Portfolio Quality

International Scenario
In developed countries, Bureaus have been in existence for a long time
In USA
Dun & Bradstreet - 1841 Equifax - 1946 Trans Union 1968

In other countries
Germany - 1934 Turkey - 1951 Belgium -1967